Blog

Posts Tagged ‘DM News’

DM News article "Digital Shines in 2010" predicts the continued rise of digital spending as a share of total marketing dollars. Two interesting takeaways from a direct mail perspective:

#1) Digital is stealing share away from direct mail

"Just like in the old days, direct marketing used to be the safe haven because it provides quick, measurable results. Online has assumed that safe haven role now," said Adam Smith, futures director at GroupM.

#2) Digital is more measurable than direct mail

"If we send a direct mailer, it's an absolute impression, but is it as trackable? Will the consumer, for example, type Overstock.com/directmailer? It's fuzzy. Some people do and others don't," [Stormy Simon, SVP of marketing and customer care for Overstock.com] explained. "But I do know that when I spend on online marketing, I'm able to say 'I spent a penny and I got a penny [back].'"

The hallmark of direct mail has always been accountability. Digital is beating it at it's own game. The challenge to direct mail is to prove ROI superiority if it is to hold onto a significant portion of advertising expenditures.

"When Merkle CEO David Williams looks back at 2008, he sees something positive among all the relatively dismal economic news: the acceleration of database marketing's evolution. "The wind was at many [database marketers'] backs for a decade," he says. "Now, they're saying to themselves, 'If the economic climate or the consumer climate is going to get difficult, I'm going to have to be more innovative, I'm going to have to be more effective.'"

"Integration, Williams believes, is the key concept surrounding all of these ongoing efforts. Generally, integration has long been the goal of direct marketing, but to improve cost-effectiveness and ensure results, Williams and other experts say database sector firms must also integrate their services to improve cost-effectiveness and ensure continued strong results."

Integration across channels has been happening. Another form of integration is now emerging — integration among marketing service providers. Different service providers working closely together to deliver a seamless solution to marketers.